How Much Can You Save With Solar PVs?

Explore How Solar PVs Can Help You Save Money

With electricity prices a concern for many households, more homeowners are looking at solar photovoltaic (PV) panels as a way to generate their own electricity and reduce their energy bills. By harnessing energy from the sun, solar panels can help you rely less on electricity from the grid and make better use of renewable energy.

But how much can you realistically save with solar PVs?

How Do Solar PVs Help You Save Money?

Solar PV panels convert daylight into electricity that can be used to power appliances, lighting and other electrical equipment in your home. Rather than buying all your electricity from an energy supplier, you can use the electricity your panels generate.

The more of your generated electricity you use directly, the less you may need to import from the grid. This is known as self-consumption and is one of the main ways solar panels can help reduce household energy bills.

Any surplus electricity may also be eligible for export payments through a Smart Export Guarantee (SEG) tariff, depending on your installation and energy supplier. This means your system could offer savings through reduced electricity purchases, alongside potential payments for electricity you send back to the grid.

How Much Can You Realistically Save With Solar PVs?

The amount you can save will vary from household to household. A larger system may generate more electricity, but your potential savings also depend on when you use electricity and how much of your solar generation you can use at home. You can read more about using Solar PVs in the UK here.

For example, households that use appliances during daylight hours may be able to make greater use of their solar electricity as it is generated.If most of your electricity use takes place in the evening, you may rely more heavily on the grid unless you have battery storage.

Your potential savings will also depend on:

• System Size: The number and capacity of your panels affect how much electricity your system can generate.
• Roof Orientation and Shading: South-facing roofs often offer strong generation potential, although east- and west-facing roofs can also work well.
• Household electricity usage: Your daily routines and overall consumption influence how much generated electricity you can use.
• Electricity Prices: The value of the electricity you avoid buying from the grid depends on your tariff.
• Export Payments: Any income from surplus electricity depends on the export tariff available to you.

Can Solar PV Battery Storage Increase Your Savings?

One way to make better use of your solar PVs is to add battery storage. Without a battery, any electricity you generate but don’t use immediately may be exported to the grid. A battery allows you to store some of that surplus electricity for later.

For example, you could generate electricity during the day, store the excess and use it in the evening when your panels are producing less or no electricity. This can reduce the amount of electricity you need to purchase from your supplier and help you save money.

However, a battery adds to the initial installation cost, so it’s worth considering whether the additional savings justify the investment.

How Long Does It Take for Solar Panels to Pay for Themselves?

The payback period is the time it takes for your accumulated savings and any export payments to cover the initial cost of your solar PV installation.

Several factors affect how quickly you reach this point, including the cost of installation, the amount of electricity your panels generate, your household’s self-consumption and any export payments you receive.

Solar panels can continue generating electricity for many years, so the potential benefits extend beyond the initial payback period. However, savings and payback estimates should account for maintenance, possible component replacements and changes in electricity prices.

Can You Use Solar PVs to Power a Heat Pump or Air Conditioning?

If you’re considering other energy-efficient home improvements, solar PVs can also work alongside technologies such as heat pumps and air conditioning.

Both air-to-water heat pumps and air conditioning systems that provide heating use electricity to operate. Solar panels can help supply some of that electricity when they are generating, potentially reducing the amount you need to import from the grid.

The timing of your energy use is important, though. Solar generation is typically higher during sunnier periods, while heating demand often increases during winter when solar output is lower. Air conditioning may align more closely with solar generation during sunny summer days.

Are Solar PV Panels Worth the Investment?

For many homeowners, solar PVs can be a worthwhile long-term investment, particularly if the property has a suitable roof and the household uses a good proportion of the electricity generated.

The biggest benefit is being able to generate your own electricity and reduce your reliance on the grid, ultimately helping you save money. Battery storage may provide additional opportunities to use that electricity later, while export payments can offer another potential source of value.

However, the best system will depend on your home, your energy usage and your priorities. Looking at these factors together can help you understand the likely savings and whether solar PVs are a suitable option for you.